Sydney, June 13, 2026, 07:02 AEST.
- Zip Co finished the session at A$2.66 on June 12, gaining 9.47%. The shares are still down 19.15% from the start of the year.
- Zip snapped up 677,066 shares for roughly A$1.64 million on June 11, according to its most recent ASX filing.
- Zip’s FY26 results, coming up August 20, are the next big focus for investors. The market is set to check the upgraded profit outlook and watch credit-loss numbers.
Zip Co Ltd (ASX: ZIP) jumped 9.47% to close at A$2.66 in the latest session, MarketScreener data showed. The S&P/ASX 200 added 170.8 points, or 1.98%, to end the day at 8,804, with the All Ordinaries up 1.92% to 9,006.1. Zip shares surged, but even with Friday’s rally, the stock stayed down 19.15% so far in 2026.
Zip kept up its buyback with another round this week. In a June 12 notice, the company reported buying back 677,066 ordinary shares the day before, spending A$1.64 million. That adds to the 18.82 million shares Zip had already repurchased ahead of that session. Companies sometimes buy back their own shares. Cancelling those shares can leave the rest of the shareholders with a larger part of the company, potentially supporting earnings per share.
Zip’s June 11 filing said 568,472 shares were cancelled under the on-market buyback, taking the total quoted ordinary shares down to 1,254,154,264. The A$50 million buyback continues to wind down issued capital. The share price is still far from levels seen in the buy-now-pay-later surge, and the company admits this doesn’t mean the stock is cheap.
Market focus on Zip is sticking with the earnings turnaround story. For the third quarter in April, Zip posted record cash EBTDA of A$65.1 million, 41.5% higher from last year. Total transaction volume hit around A$4.0 billion, up 22.4%. Cash EBTDA, short for cash earnings before tax, depreciation, and amortisation, is a common metric for gauging operating cash profit before some accounting adjustments. Zip has lifted its FY26 group cash EBTDA guidance to no less than A$260 million.
Zip’s bulls say investors are starting to look beyond just revenue growth. The company posted a 19.4% operating margin, or cash EBTDA as a share of income, in the third quarter, up from 16.5% a year ago. US TTV climbed 43.1% in US-dollar terms. The US is still key for Zip, and the fatter margin gives it more scope for investment, covering credit losses, and buybacks.
The main risk for Zip is still credit and valuation after the stock rebound. Group net bad debts hit 1.93% of TTV in Q3, up from 1.64% last year. That’s the share of transactions Zip doesn’t expect to collect, a big risk factor for buy-now-pay-later firms. Management says US credit losses should drop below 1.75% of TTV in Q4. Investors will look for proof in the full-year numbers that any growth isn’t coming from looser credit.
Analyst consensus stays positive on Zip, though valuation flags remain. MarketScreener lists a Buy consensus from 11 analysts. Their average target comes in at A$3.674, which is about 38% above Zip’s A$2.66 close. Target prices range from A$2.60 to as high as A$5.40, a wide gap. That spread points to real disagreement on Zip’s risk and reward.
Zip’s FY26 results are due Thursday, August 20, the next big event for the stock. Zip still looks like a selective play for investors who can handle swings in fintech and consumer credit, not a safe value pick. The recent buyback, higher FY26 guidance and analyst calls back the bullish side. But after a one-day 9% pop, a tough year so far, and its jumpiness around bad debt, the shares could swing the other way if the August update brings slower US growth or softer credit trends.
